A subcontractor emails a certificate showing general liability limits, but the listed policy excludes the subcontracted operation. What should the prime verify?
- AIt replaces the subcontract
- Verify the policy, limits, and exclusions
- CThe certificate rewrites every policy exclusion
- DIt guarantees every claim will be paid
Why B is correct
The best answer is: Verify the policy, limits, and exclusions. Risk transfer depends on the actual policy and required endorsements, not the certificate alone. Contractual requirements should be reviewed before work and monitored for cancellation or expiration. The new fact pattern changes the setting, not the governing rule or management control. The other choices either skip a required step, apply a different rule, or fail to address the stated risk.